The Development Bank of Southern Africa (DBSA) is one of Africa's leading development finance institutions, providing infrastructure finance across energy, water, transport, ICT, and social infrastructure. While DBSA primarily funds large-scale projects, SMEs can access opportunities through subcontracting, ESD programmes, and partnership with funded projects.
Who This Is For
This guide is for:
- Construction and engineering companies seeking project finance
- Infrastructure developers and project sponsors
- Municipalities needing infrastructure development support
- SME contractors looking to subcontract on large projects
- Service providers in water, energy, transport, and ICT
- Companies interested in climate and green infrastructure finance
About DBSA
DBSA was established in 1983 as a development finance institution focused on infrastructure development. It operates as a Schedule 2 national government business enterprise under the Ministry of Finance, with a mandate to accelerate sustainable socio-economic development in the SADC region.
DBSA's Role in Infrastructure
Infrastructure Finance
Long-term loans and project finance for infrastructure development across sectors.
Project Preparation
Technical assistance and grants for bankable project preparation.
Municipal Support
Financing and capacity building for local government infrastructure.
Climate Finance
Green bonds and climate-focused infrastructure investments.
DBSA Funding Products
Project Finance
Long-term debt financing for infrastructure projects with repayment tied to project cash flows rather than sponsor balance sheets.
Eligible Projects:
- Power generation and transmission
- Water and sanitation infrastructure
- Transport (roads, rail, ports, airports)
- ICT infrastructure
- Social infrastructure (schools, hospitals)
Infrastructure Fund
DBSA manages the R100 billion Infrastructure Fund announced in the 2019 budget, focused on blended finance to crowd in private sector investment.
Focus Areas:
Municipal Support
Direct lending and technical assistance to municipalities for infrastructure development and maintenance.
Financial Support:
- Direct loans to municipalities
- MIG top-up funding
- Bridge financing
- Bulk infrastructure funding
Technical Support:
- Infrastructure planning
- Project management
- Capacity building
- Revenue enhancement
Project Preparation Facility
Grant funding for project preparation activities to help projects reach bankability and attract investment.
Eligible Activities:
- Pre-feasibility and feasibility studies
- Environmental and social impact assessments
- Technical design and engineering studies
- Financial modelling and structuring
- Legal and regulatory due diligence
- Transaction advisory services
Climate Finance
DBSA is an accredited entity for major climate funds and issues green bonds to finance climate-positive infrastructure.
Climate Funding Access:
Priority Sectors
DBSA focuses funding on key infrastructure sectors:
Energy
Generation, transmission, distribution, renewable energy
Water
Water supply, sanitation, wastewater, bulk infrastructure
Transport
Roads, rail, ports, airports, public transport
Eligibility Requirements
Entity Requirements
For Direct DBSA Finance:
- Registered South African entity or SOE/municipality
- Proven track record in infrastructure delivery
- Strong balance sheet or project economics
- Experienced management team
- Clear equity contribution (typically 20-30%)
For SME Subcontracting/Vendor Registration:
- Registered CIPC entity
- Tax compliant with valid TCC
- B-BBEE certificate (minimum Level 4)
- Relevant professional registrations (CIDB, ECSA, SACQSP)
- Proof of capability and experience
Project Criteria
| Criterion | Requirement |
|---|---|
| Project Size | Minimum R50 million (typically R100M+) |
| Sector | Infrastructure (energy, water, transport, ICT, social) |
| Location | South Africa or SADC region |
| Development Impact | Clear socio-economic benefits, job creation |
| Financial Viability | Sustainable cash flows or government guarantee |
| Environmental | Environmental authorisation where required |
How to Apply
Application Steps
Initial Engagement
Contact DBSA's Business Development team to discuss your project. They will assess whether DBSA is the right financing partner.
Preliminary Assessment
Submit preliminary project information for initial screening. DBSA evaluates strategic fit, development impact, and basic financial viability.
Full Application
Prepare and submit complete application with business plan, financial model, technical studies, and all supporting documentation.
Due Diligence
DBSA conducts comprehensive due diligence including technical, financial, legal, environmental, and social assessments. This typically takes 3-6 months.
Credit Approval
Projects are presented to DBSA's Credit Committee for approval. Terms and conditions are negotiated and documented.
Required Documents
- Company registration and MOI
- 3-5 years audited financial statements
- Detailed project feasibility study
- Financial model with projections
- Environmental Impact Assessment (EIA)
- Technical design and engineering reports
- Land and environmental authorisations
- Off-take agreements or revenue certainty evidence
- B-BBEE certificate and transformation plan
SME Opportunities
While DBSA typically finances large projects, SMEs can access significant opportunities through various programmes:
Subcontracting Opportunities
DBSA-funded projects have mandatory subcontracting targets for EMEs and QSEs. Projects must allocate 30%+ of contract value to B-BBEE compliant subcontractors.
How to Access:
- Register on DBSA's vendor database
- Monitor DBSA website for project announcements
- Contact main contractors on awarded projects
- Build relationships with Tier 1 contractors
- Maintain CIDB registration at appropriate grade
ESD Programmes
Major contractors on DBSA-funded projects often run Enterprise and Supplier Development programmes to meet their B-BBEE scorecard requirements.
Benefits Include:
Tips for Success
Strong Project Preparation
Invest in proper feasibility studies and financial modelling. DBSA won't finance poorly prepared projects regardless of their potential.
Clear Development Impact
Demonstrate how your project contributes to job creation, skills development, and local economic development.
Early Engagement
Engage DBSA early in your project planning. Their input can help structure projects for better financing outcomes.
Realistic Timelines
DBSA funding processes take 6-12 months. Plan accordingly and don't expect quick turnaround on large project financing.
Common Mistakes to Avoid
- Projects too small: Approaching DBSA for projects under R50M when other DFIs or commercial banks would be more appropriate.
- Incomplete preparation: Submitting applications without proper feasibility studies, EIAs, or financial models.
- Weak equity: Expecting 100% debt finance when DBSA requires meaningful equity contribution.
- Revenue uncertainty: Projects without clear off-take agreements or revenue streams.
- Ignoring compliance: Not having required environmental authorisations, land rights, or regulatory approvals.
Next Steps
Ready to Engage DBSA?
- Visit DBSA's website: www.dbsa.org
- Register as a vendor: Complete DBSA's vendor registration process for subcontracting opportunities
- Contact Business Development: Email info@dbsa.org or call +27 11 313 3911
- Monitor tender notifications: Subscribe to DBSA's mailing list for project opportunities
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IDC Complete Guide
Alternative DFI funding for industrial and manufacturing projects.
Ready to Apply?
Browse live DBSA funding programmes in FundingOS. Check your readiness before applying to identify any gaps in your documentation.
Need Help With DBSA Infrastructure Finance?
Our network of project finance consultants and engineers can help you prepare your DBSA application, feasibility studies, and infrastructure project documentation.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation